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This paper surveys the literature on monetary policy at the zero lower bound on nominal interest rates. Certain crucial insights regarding expectations have been neglected in recent research in this field. Taking this into account, the interactions between demand and supply shocks appear crucial...
Persistent link: https://www.econbiz.de/10005106759
The overall costs of the payment system to society are considerable. These costs depend on the relative usage of the available payment instruments, which differ in the costs that each entails to market participants in the payment chain. In the Netherlands, debit card payments have become less...
Persistent link: https://www.econbiz.de/10010945593
burden of the banking sector is modest. We model a regulator whose trade-off between bank risk and credit supply is derived … has through bank incentives. The larger the correlation between banks' projects, the more important the role for monetary … policy. In a dynamic setting, not internalizing bank risk leads a monetary authority to keep rates low for too long after a …
Persistent link: https://www.econbiz.de/10008774017
Measuring bank performance solely on the basis of profitability conveys significant information about past performance … criteria: (i) profitability; (ii) risk; (iii) market power, and (iv) efficiency. We use this scorecard to compare the …
Persistent link: https://www.econbiz.de/10010562428
) the collateral's amount and use and 5) bank run signs. This information can be used both for monitoring the TARGET2 …
Persistent link: https://www.econbiz.de/10009292423
This paper develops a methodology, based on Furfine (1999), to identify unsecured interbank money market loans from transaction data of the most important euro processing payment system, TARGET2, for maturity ranging from one day (overnight) up to three months. The implementation has been...
Persistent link: https://www.econbiz.de/10010757281
issue concerns possible limits to transparency. In an independent central bank that strives to be accountable and to …
Persistent link: https://www.econbiz.de/10005101829
This paper investigates how changes in the monetary policy framework have affected the overnight money market lending rate for the Dutch segment of the euro area during tranquil and crisis times. We present an EGARCH model on the volatility of the overnight lending rate. The results show that...
Persistent link: https://www.econbiz.de/10011004570
This paper examines which economic, fiscal, external, financial, and institutional characteristics of countries affect the likelihood that they adopt inflation targeting as their monetary policy strategy. We estimate a panel binary response transition model for 60 countries and two subsamples...
Persistent link: https://www.econbiz.de/10009367173
We study inflation targeting under uncertainty. Although uncertainty in the values of structural parameters makes the policy maker naturally more cautious, it does not immediately lead to the optimal monetary policy rule. We examine thus whether there exists a policy rule that improves welfare...
Persistent link: https://www.econbiz.de/10005101911